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Target fourth-quarter earnings beat expectations
March 8th, 2013
MINNEAPOLIS – Although Target Corp.’s fourth-quarter profits suffered from a disappointing holiday season, adjusted results exceeded analysts’ estimates. Reported net income fell 2% to $961 million, or $1.47 per diluted share.
Excluding special items including losses related to Target’s Canadian operations and tax-related items, adjusted net earnings increased 6.9% to $1.08 billion, or $1.65 per share, well ahead of the average estimate of $1.47 per share among analysts polled by FactSet.
Fourth-quarter sales rose 6.8% to $22.37 billion, helped by an extra week. Comparable-store sales however, grew just o.4% as a highly promotional holiday environment took its toll.
For the year, adjusted net income rose 4.7% to $3.16 billion on a 5.1% increase in sales to $71.96 billion. "We’re pleased with Target’s fourth-quarter performance, particularly in the face of a highly promotional retail environment and continued consumer uncertainty," said Gregg Steinhafel, chairman, president and chief executive officer.
In other news, Target kicked off the start of its Canadian operations by announcing the March 5 opening of three pilot stores in Ontario. They are the first of 124 stores that will open in Canada during 2013.